RadioShack said it expects operating income from its kiosks segment will decline by about $10 million to $15 million in 2011, reflecting the impact of ramping up its new kiosks in Target stores and discontinuing its ones in Sam's Club stores. Growth is expected to resume in 2012.

RadioShack had warned in January that poor sales of T-Mobile USA phones and a shift towards cheaper phones hurt its fourth-quarter performance. RadioShack said it has informed T-Mobile that the company considers it to have "materially breached" its contract.